Iran’s Foreign Ministry has announced that the Memorandum of Understanding (MoU) between Iran and the United States is “completely dead,” attributing its collapse to continued American military strikes. The ministry has also issued a warning that countries supporting these US actions could be considered legitimate military targets. This development follows US strikes on Iranian targets in response to Iranian assaults on commercial vessels in the Strait of Hormuz, escalating tensions and impacting global oil supply routes.
The MoU, initially signed on June 17, 2026, aimed to cease hostilities between the US, Iran, and their allies. However, the agreement’s expiration on July 8, 2026, and subsequent military actions have led to what Iran describes as a definitive breach. The statement by Iran’s Foreign Ministry further emphasizes the derailment of diplomatic efforts, highlighting the role of the US in scuttling negotiations in Muscat aimed at managing the strategic Strait of Hormuz.
Market participants appear to view this development as significantly increasing the likelihood of Iran formally withdrawing from the MoU negotiations. This has been reflected in the market pricing, suggesting a shift towards a higher probability of a formal withdrawal announcement by the end of July.
